Financing Options for a UK Property Investment

Uk-property-investmentWhen it comes to a UK property investment, financing has to be a subject well discussed and cautiously decided upon. It is of no secret that real estate in the country particularly in the bigger cities like London is accompanied by high demands given the strong economy and tourism. In most cases than not, prices tend to be higher too compared to those from other countries. If you are looking at buying one, you should very well be aware of the financing options available in the market. This way, you get a better look and pick at the ones that will work best to your advantage.

  • EQUITY FINANCING

Simply put, equity financing is a method of raising equity or capital by selling corporate stock or shares to interested investors who will in exchange receive ownership interests in the company. This is a very common method in the market today and one used by many established entities.

  • DEBT FINANCING

On the flip side of the coin, debt financing does not give the lender a share or interest to the business. Instead, the principal amount owed shall be repaid with accumulated interest. This is often seen in the form of loans. These vary from short, medium to long term arrangements.

  • PERSONAL SAVINGS

Resources that you have saved up or accumulated yourself for whatever means (e.g. income, return on investments, salary, etc) can also be used to acquire a UK property investment. However, this type oftentimes needs a supplement as it may not suffice all on its own.

  • FRIENDS AND RELATIVES

If you are buying the property not only for yourself but for others too, financing may be done by pooling everyone’s available resources. Of course, the titles and ownership here have to be agreed on and put to paper to avoid collisions in the future.

  • ANGEL INVESTORS

If you are acquiring the property for your business or company then you may also tap on funds from angel investors. This pertains to wealthy individuals who lend their personal assets to an enterprise in exchange for a share in its ownership.

  • BRIDGE FINANCING

You may also accomplish the purchase of your UK property investment by entering into a bridge or interim financing. This is often used in the event that your permanent and main source of fund does not arrive earlier than expected so as to close the deed of sale and provide for the down payment and initial installments.

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